Neubiberg (dpa) – Chipmaker Infineon is stable during the Corona crisis. From July to September, the Dax group earned 109 million euros and thus returned to profitability, as announced.
In the previous quarter, it fell into the red for a short period of time, which, in addition to the burdens of the pandemic, was also due to the high costs of acquiring US competitor Cypress. However, both have left their mark: in the entire year that ended on September 30, profits fell more than half to 368 million euros.
Infineon boss Reinhard Ploss spoke of a “very decent fourth quarter” and an overall successful business year. “Some of our target markets, especially the auto market, have recovered better than expected since the summer,” he said. “Added to this is the accelerated structural shift towards electromobility, especially in Europe.” Electric cars contain more semiconductors than combustion engines, which means more business opportunities for Infineon.
However, the dividend should drop from 5 to 22 cents per share. The group wants to “take into account the serious economic effects and the continued persistence of the risks of the coronavirus pandemic” and maintain the financial margin.
To this end, the company has already implemented several cost-saving measures in the current year. They are said to have raised between 100 and 150 million euros.
By contrast, Ploss is generous to the roughly 20,500 shift workers in production. You should receive a crown premium, the amount of which varies according to regional purchasing power. In Central Europe it should be around 1000 euros. These employees could not have moved into the home office, Ploss emphasized. In some cases, they would have even remained in production to be able to work in some countries despite movement restrictions. “That is a very extraordinary commitment.”
For the new financial year that has been underway since October, Ploss is “generally cautiously optimistic.” Infineon’s structural reasons for growth are still intact, and some are even getting an additional boost from the Corona crisis. In addition, the head of Infineon expects more positive effects from the acquisition of Cypress, also because it expands the product portfolio.
Overall, Ploss sees the group on track toward the goals associated with the acquisition. The first mutual successes have also been achieved in sales, he said. Together with the new subsidiary, Infineon expects to generate around € 10.5 billion in sales in the current fiscal year. In the past it was just under 8.6 billion.